36630 Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Proposed Rules

adding a new airworthiness directive

(AD), to read as follows:

Boeing: Docket 97–NM–185–AD. Supersedes

AD 94–25–01, Amendment 39–9085.

Applicability: Model 747 series airplanes,

line numbers 202 through 396 inclusive,

equipped with Pratt & Whitney Model JT9D–

70 engines; certificated in any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (f) of this AD. The

request should include an assessment of the

effect of the modification, alteration, or repair

on the unsafe condition addressed by this

AD; and, if the unsafe condition has not been

eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent fatigue cracking of the spring

beam, which could result in loss of an

outboard strut, accomplish the following:

(a) Prior to the accumulation of 10,000 total

flight cycles, or within 30 days after

December 22, 1994 (the effective date of AD

94–25–01), whichever occurs later, perform a

detailed visual inspection to detect fatigue

cracking of the spring beams on the outboard

struts, in accordance with Boeing Alert

Service Bulletin 747–54A2171, dated October

31, 1994, or Revision 1, dated June 27, 1996.

(Remove the gap covers and fairing access

panels to perform this inspection.)

(1) If no cracking is detected, repeat the

visual inspection thereafter at intervals not to

exceed 300 flight cycles until the

requirements of paragraph (d) of this AD

have been accomplished.

(2) If any cracking is detected, prior to

further flight, accomplish the replacement

actions specified in paragraph (d) of this AD.

Note: 2: Accomplishment of the optional

terminating action specified in paragraph (b)

of AD 94–25–01 does not constitute

terminating action for the requirements of

this AD.

(b) For airplanes that have accomplished

terminating action in accordance with

paragraph (b) of AD 94–25–01: Within 1,000

flight cycles after accomplishment of the

terminating action specified by AD 94–25–

01, or within 90 days after the effective date

of this AD, whichever occurs later, perform

a detailed visual inspection to detect fatigue

cracking of the spring beams on the outboard

struts, in accordance with Boeing Alert

Service Bulletin 747–54A2171, dated October

31, 1994, or Revision 1, dated June 27, 1996.

(1) If no cracking is detected, repeat the

detailed visual inspection thereafter at

intervals not to exceed 300 flight cycles until

the requirements of paragraph (d) of thisAD

have been accomplished.

(2) If any cracking is detected, prior to

further flight, accomplish the replacement

actions specified in paragraph (d) of this AD.

(c) For airplanes that have accomplished

installation of the Boeing-inspected spare

titanium spring beams in accordance with

Boeing Service Bulletin 747–

54A2171,Revision 1, dated June 27, 1996:

Within 3,000 flight cycles after

accomplishment of the installation of the

spare spring beams, or within 90 days after

the effective date of thisAD, whichever

occurs later, perform a detailed visual

inspection to detect fatigue cracking of the

spring beams on the outboard struts, in

accordance with Boeing AlertService Bulletin

747–54A2171, dated October 31, 1994, or

Revision 1, dated June 27, 1996.

(1) If no cracking is detected, repeat the

detailed visual inspection thereafter at

intervals not to exceed 300 flight cycles until

the requirements of paragraph (d) of thisAD

have been accomplished.

(2) If any cracking is detected, prior to

further flight, accomplish the replacement

actions specified in paragraph (d) of this AD.

(d) For all airplanes: Prior to the

accumulation of 10,000 total flight cycles, or

within 18 months after the effective date of

this AD, whichever occurs later, replace the

spring beams on the outboard struts with

new, improved spring beams, in accordance

with Boeing Service Bulletin 747–54–2177,

dated June 27, 1996. Accomplishment of this

replacement constitutes terminating action

for the repetitive inspection requirements of

this AD.

(e) As of the effective date of this AD, no

person shall install a spring beam assembly,

part numbers 65B89175–5, –6, –9, –10, –13,

–14, –19, and –20, on any airplane.

(f) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,Seattle

Aircraft Certification Office (ACO), FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Seattle ACO.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

(g) Special flight permits may be issued in

accordance with sections §§ 21.197 and

21.199 of the Federal Aviation Regulations

(14 CFR 21.197 and 21.199) to operate the

airplane to a location where the requirements

of this AD can be accomplished.

Issued in Renton, Washington, on June 30,

1998.

Vi L. Lipski,

Acting Manager, Transport Airplane

Directorate,Aircraft Certification Service.

[FR Doc. 98–17947 Filed 7–6–98; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–NM–167–AD]

RIN 2120–AA64

Airworthiness Directives; British

Aerospace (Jetstream) Model 4101

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

certain British Aerospace (Jetstream)

Model 4101 airplanes. This proposal

would require modification of the attach

points of the uplock system of the nose

landing gear (NLG). This proposal is

prompted by issuance of mandatory

continuing airworthiness information by

a foreign civil airworthiness authority.

The actions specified by the proposed

AD are intended to prevent wear of the

attach points of the uplock system of the

NLG; such wear could result in damage

to the adjacent emergency hydraulic

system, or jamming of the uplock

system and consequent inability to

extend and retract the NLG.

DATES: Comments must be received by

August 6, 1998.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 98-NM–

167-AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

AI(R) American Support , Inc., 13850

Mclearen Road, Herndon, Virginia

20171. This information may be

examined at the FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

Norman B. Martenson, Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate, 1601

Lind Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2110;

fax (425) 227–1149.
Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Proposed Rules 36631

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 98-NM–167-AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Transport Airplane Directorate,

ANM–114, Attention: Rules Docket No.

98-NM–167-AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

The Civil Aviation Authority (CAA),

which is the airworthiness authority for

the United Kingdom, notified the FAA

that an unsafe condition may exist on

certain British Aerospace (Jetstream)

Model 4101 airplanes. The CAA advises

that it has received reports of wear of

the attach points of the uplock system

of the nose landing gear (NLG).

Investigation revealed that the wear is

due to excessive loads from the uplock

system, which caused excessive

movement of the uplock mechanisms.

Such wear of the attach points of the

NLG uplock system, if not corrected,

could result in damage to the adjacent

emergency hydraulic system, or

jamming of the uplock system and

consequent inability to extend and

retract the NLG.

Explanation of Relevant Service

Information

The manufacturer has issued

Jetstream Alert Service Bulletin J41–53–

041, dated July 25, 1997, which

describes procedures for modification of

the attach points of the uplock system

of the NLG. The modification involves

installation of nested angle stiffeners on

the ‘‘Z’’ members near the NLG and

removal and replacement of the distance

tubes and pieces with new distance

tubes and pieces. Accomplishment of

the actions specified in the alert service

bulletin is intended to adequately

address the identified unsafe condition.

The CAA classified this alert service

bulletin as mandatory and issued British

airworthiness directive 009–07–97 in

order to assure the continued

airworthiness of these airplanes in the

United Kingdom.

FAA’s Conclusions

This airplane model is manufactured

in the United Kingdom and is type

certificated for operation in the United

States under the provisions of § 21.29 of

the Federal Aviation Regulations (14

CFR 21.29) and the applicable bilateral

airworthiness agreement. Pursuant to

this bilateral airworthiness agreement,

the CAA has kept the FAA informed of

the situation described above. The FAA

has examined the findings of the CAA,

reviewed all available information, and

determined that AD action is necessary

for products of this type design that are

certificated for operation in the United

States.

Explanation of Requirements of

Proposed Rule

Since an unsafe condition has been

identified that is likely to exist or

develop on other airplanes of the same

type design registered in the United

States, the proposed AD would require

accomplishment of the actions specified

in the alert service bulletin described

previously.

Cost Impact

The FAA estimates that 58 airplanes

of U.S. registry would be affected by this

proposed AD, that it would take

approximately 10 work hours per

airplane to accomplish the proposed

modification, and that the average labor

rate is $60 per work hour. Required

parts would cost approximately $170

per airplane. Based on these figures, the

cost impact of the proposed AD on U.S.

operators is estimated to be $44,660, or

$770 per airplane.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the proposed requirements of this AD

action, and that no operator would

accomplish those actions in the future if

this AD were not adopted.

Regulatory Impact

The regulations proposed herein

would not have substantial direct effects

on the States, on the relationship

between the national government and

the States, or on the distribution of

power and responsibilities among the

various levels of government. Therefore,

in accordance with Executive Order

12612, it is determined that this

proposal would not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

For the reasons discussed above, I

certify that this proposed regulation (1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A copy of the draft

regulatory evaluation prepared for this

action is contained in the Rules Docket.

A copy of it may be obtained by

contacting the Rules Docket at the

location provided under the caption

ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(14 CFR part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

British Aerospace Regional Aircraft

[Formerly Jetstream Aircraft Limited;

British Aerospace (Commercial Aircraft)

Limited]: Docket 98–NM–167–AD.

Applicability: Jetstream Model 4101

airplanes, constructor’s numbers 41004

through 41100 inclusive; certificated in any

category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been
36632 Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Proposed Rules

1On January 1, 2000, certain computer systems

may function erroneously if necessary

modifications have not been made because, among

other things, the systems may read incorrectly the

date 01/01/00 as being the year 1900 or another

incorrect date. Problems may arise earlier than

January 1, 2000, because dates after December 31,

1999, already are being entered into computer

programs and may be misread.

2Reports to be Made by Certain Brokers and

Dealers, Exchange Act Release No. 39724 (Mar. 5,

1998) [63 FR 12056 (Mar. 12, 1998)].

3Reports to be Made by Transfer Agents,

Exchange Act Release No. 39726 (Mar. 5, 1998) [63

FR 12062 (Mar. 12, 1998)].

4The Investment Company Institute, Current

Statistical Releases, Trends in Mutual Fund

Investing, April 1998, available at <http://

www.ici.org/factslfigures/trendsl0498html>.

5The Investment Company Institute, Retirement

Statistics, Retirement Plans Hold 35 Percent of

Mutual Fund Assets (Oct. 14, 1997), available at

<http://www.ici.org/retirement/

retirementlstatistics96.html>.

6Under the federal securities laws, advisers and

investment companies are obligated to make, and

keep current, certain books and records relating to

their business. See rule 204–2 under the Advisers

Act [17 CFR 275.204–2]; rule 31a-1 under the

Investment Company Act of 1940 [17 CFR 270.31a1].

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent wear of the attach points of the

uplock system of the nose landing gear

(NLG), which could result in damage to the

adjacent emergency hydraulic system, or

jamming of the uplock system, and

consequent inability to extend and retract the

NLG, accomplish the following:

(a) Prior to the accumulation of 9,000 total

landings, or within 1,000 landings after the

effective date of this AD, whichever occurs

later, modify the attach points of the uplock

system of the NLG, in accordance with

Jetstream Alert Service Bulletin J41–53–041,

dated July 25, 1997.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, International Branch,

ANM–116.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the International Branch,

ANM–116.

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Note 3: The subject of this AD is addressed

in British airworthiness directive 009–07–97.

Issued in Renton, Washington, on June 30,

1998.

Vi L. Lipski,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 98–17950 Filed 7–6–98; 8:45 am]

BILLING CODE 4910–13–U

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Parts 275 and 279

[Release No. IA–1728; IC–23293; File No.

S7–20–98]

RIN 3235–AH45

Investment Adviser Year 2000 Reports

AGENCY: Securities and Exchange

Commission.

ACTION: Proposed rule.

SUMMARY: The Securities and Exchange

Commission (‘‘Commission’’) is

publishing for comment a proposed new

rule and form under the Investment

Advisers Act of 1940 that would require

most registered investment advisers to

file with the Commission a report

regarding preparations for the Year 2000

computer problem. The reports would

inform the Commission about the steps

that investment advisers have taken,

and will take, to prepare for the

challenges posed by the Year 2000

problem.

DATES: Comments must be received on

or before August 10, 1998.

ADDRESSES: Comments should be

submitted in triplicate to Jonathan G.

Katz, Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Stop 6–9, Washington, D.C. 20549.

Comments also may be submitted

electronically to the following E-mail

address: rule-comments@sec.gov. All

comment letters should refer to File No.

S7–20–98; this file number should be

included on the subject line if E-mail is

used. Comment letters will be available

for public inspection and copying in the

Commission’s Public Reference Room,

450 Fifth Street, N.W., Washington, D.C.

20549. Electronically submitted

comment letters also will be posted on

the Commission’s Internet web site

(http://www.sec.gov).

FOR FURTHER INFORMATION CONTACT:

Arthur B. Laby, Special Counsel, at

(202) 942–0716, Task Force on

Investment Adviser Regulation, Division

of Investment Management, Securities

and Exchange Commission, 450 Fifth

Street, N.W., Mail Stop 5–6,

Washington, D.C. 20549.

SUPPLEMENTARY INFORMATION: The

Commission today is requesting public

comment on proposed rule 204–5 [17

CFR 275.204–5] and Form ADV-Y2K [17

CFR 279.9] under the Investment

Advisers Act of 1940 (‘‘Advisers Act’’)

[15 U.S.C. 80b].

I. Background

The Commission is undertaking a

review of U.S. public companies and the

U.S. securities industry to examine

whether they will be prepared for the

computer challenges associated with the

Year 2000.1 As part of this initiative, in

March 1998, the Commission requested

comment on proposed rule changes that

would require certain broker-dealers 2

and transfer agents 3 to file with the

Commission a report on Year 2000

readiness. The Commission today is

requesting comment on a new rule and

form that would require most

investment advisers registered with the

Commission under the Advisers Act to

file a report on Year 2000 readiness.

Investment advisers (‘‘advisers’’)

manage approximately $13 trillion of

savings of American families. These

assets are managed on behalf of

investors directly, as well as indirectly

through financial institutions such as

employee benefit plans, trusts, hedge

funds and mutual funds. Mutual funds

alone control over $5 trillion of assets,4

35 percent of which are estimated to be

retirement plan assets.5 Thus,

investment advisers play a key role in

the economic life of America today.

Advisers manage these assets using

computer systems that connect them

with the markets, service providers and

clients. In addition, advisers depend

upon internal computer systems for

various management, compliance and

recordkeeping functions.6 The

development and growth of the Internet

has made advisory clients more

dependent upon their advisers’

computer systems to provide them with

information about their adviser and

their portfolios. The failure of the

advisers’ or third parties’ computer